Question
Discuss the impact of assets on capital structure.

Answer

  • No business can be done without raising assets. Assets can be big, small, purchased or leased.
  • If the business requires fixed assets on large scale, then the ratio of equity share will be high in capital structure of that business.
  • Similarly, if the company needs high value assets then whether it procures them by purchasing or leasing affects the form of capital structure.

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